Refinance Your Mortgage In Bankruptcy

There are numerous questions a lender considers in extending credit to a borrower.  One key question on the Uniform Residential Loan Application (AKA Fannie Form 1003) is on page three, section VIII, questions B, E and F:  “Have you been declared bankruptcy in the last 7 years?; Have you directly or indirectly been obligated on any loan which resulted in bankruptcy?; and Are you presently delinquent or in default on any Federal debt or any other loan, mortgage, financial obligation…”

Answering yes to any of these questions is a deal breaker.  There is no lender that would consider a loan application with an open bankruptcy.   If the bankruptcy has been discharged, the lender will state in its guidelines the time period that must elapse (i.e. 24 to 78 months or possibly longer) before the borrower would be considered.